Chimera Investment Corporation (CIM) AI Stock Analysis

Chimera Investment Corporation functions as a real estate investment trust specializing in managing a diversified portfolio of mortgage assets in the United States. Operating through its subsidiaries, it invests in residential mortgage loans, agency and non-agency residential mortgage-backed securities, agency mortgage-backed securities backed by pools of residential and commercial loans, and related real estate securities. The company elects REIT tax status by distributing a significant portion of taxable income to shareholders. It diversifies its holdings across investment-grade and non-investment-grade security classes to optimize returns and manage risk across various mortgage market segments.

Revenue has shown sharp annual shifts, swinging from $1.06B in FY2021 to -$415.2M in FY2022, before reaching $204.8M in FY2023, $257.9M in FY2024, and $820.8M in FY2025. In FY2025, revenue grew 218.2%, generating net income of $230.5M and diluted EPS of $1.72 with an operating margin of 93.2%. However, trailing twelve month revenue stood at $220.0M with an EPS of -$1.04. In the latest quarter ended June 30, 2026, quarterly revenue rose 8.1% year-over-year, while quarterly earnings declined 58.5%.

As of June 30, 2026, Chimera held $444.0M in cash and short-term investments alongside total debt of $13.45B, resulting in net debt of $13.01B. Total assets stood at $16.05B against shareholders' equity of $2.42B, representing a debt-to-equity ratio of 5.57 and a current ratio of 3.10. Operating and free cash flow turned negative at -$248.9M in FY2025. Capital expenditures were $38.2M, while dividends paid totaled $208.7M for the same fiscal year.

Chimera traded at a forward P/E of 5.3x as of October 16, 2026, well below the 23.5x median of its US-listed Real Estate peers. Its price-to-book stood at 0.4x and price-to-sales was 3.2x compared to the sector peer median of 3.7x, while enterprise value to revenue reached 66.9x. The stock has underperformed the broader market, dropping 23.6% over the past year and 66.0% over five years, while the S&P 500 (SPY) returned 16.8% and 83.0% over those same intervals.

Chimera pays a quarterly dividend with a forward annual payout of $1.80 per share, representing a dividend yield of 21.43%. The payout ratio is 90.5%, and the company has paid dividends for 20 consecutive years. However, its dividend has contracted at an annualized 5-year rate of -18.8%. The last ex-dividend date was September 30, 2026.

Wall Street coverage consists of 1 Strong Buy and 4 Hold recommendations. The mean price target is $14.17, which stands 68.7% above the October 16, 2026 closing price of $8.40. For the fiscal year ending December 31, 2026, analysts estimate EPS of $1.99 on revenue of $302.1M. Chimera has beat EPS estimates in 2 of the last 4 quarters, with the next earnings release scheduled for November 5, 2026.

This page is an AI-written research summary of Chimera Investment Corporation (CIM). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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